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Sep 30
Red Cat Holdings Inc Q3 2025 Earnings Report
Red Cat Holdings reported Q3 2025 results with record revenue growth and an expanded U.S. Army contract, but continued operating and net losses.
Key Takeaways
Red Cat Holdings posted strong revenue growth in Q3 2025, driven by U.S. Army contracts and new maritime initiatives. However, the company reported a net loss of $16 million amid high operating expenses.
Revenue grew to $9,646,392 in Q3 2025, up 646% YoY and 200% QoQ.
Net loss totaled $16,016,448 as operating expenses remained elevated.
Company expanded its drone production and launched Blue Ops maritime division.
Ended the quarter with $206,425,996 in cash, significantly strengthening liquidity.
Red Cat Holdings Inc
Red Cat Holdings Inc
Forward Guidance
Red Cat expects Q4 revenue to reach $20–23 million and FY2025 revenue to grow by 124% YoY.
Positive Outlook
- Q4 revenue guidance of $20–23 million indicates continued strong growth.
- FY2025 revenue guidance raised to $34.5–37.5 million.
- U.S. Army contract expanded to $35 million for SRR UAS Tranche 2.
- Launch of Blue Ops expands addressable market to maritime defense.
- Increased manufacturing capacity across multiple facilities.
Challenges Ahead
- High operating expenses continue to weigh on profitability.
- Net losses persist despite strong revenue gains.
- No non-GAAP EPS or adjusted profitability metrics provided.
- Unclear timing on profitability turnaround.
- Heavy dependence on government contracts introduces revenue concentration risk.